Saturday, November 17, 2012

Teamsters weren’t fools on Hostess

H/T commenter WoodyWoodpecker2016 over at the Daily Herald. Teamsters weren’t idiots. Sadly the Bakers were. The Brand will survive but these jobs are gone.

The company, founded in 1930, is fighting battles beyond labor costs, however. Competition is increasing in the snack market, while Americans are increasingly conscious about healthful eating. Hostess also makes Dolly Madison, Drake’s and Nature’s Pride snacks.

The Teamsters union is urging the bakers union to hold a secret ballot on whether to continue striking. Citing its financial experts who had access to the company’s books, the Teamsters say that Hostess’ warning of liquidation is “not an empty threat or a negotiating tactic” but a certain outcome if workers keep striking.

Hostess warned that it would begin closing operations as early as Tuesday.